Petrol Landing Cost Hits N720/litre – Oil Marketer Confirms

A popular marketer revealed on Thursday that the landing cost of Premium Motor Spirit (PMS), popularly called petrol, has hit N720/litre from N651 in August, Naija News has learned.

According to them, the cost surged further from the previous price because of the volatility in the exchange rate.

The foreign exchange rate of the Central Bank of Nigeria (CBN) as of Wednesday was around N766/$1, while it hovered around N990/$ at the parallel market.

Confirming the development, the Chief Executive Officer, of PETROCAM Trading (Nig) Ltd., Patrick Ilo, told The Punch that as of Tuesday, he landed 52,000 metric tonnes of petrol imported by the company N720/litre without subsidies.

Ilo explained that at this cost, his company can not sell because of the price of the Nigerian National Petroleum Company Limited (NNPCL).

The PETROCAM boss said this is evidence that the NNPCL is still subsidising the product, considering the landing cost, adding that he doesn’t blame the government.

According to him, if the landing cost was already N720, the pump price should be around N729/litre in Lagos State if the Federal Government had truly stopped subsidising the product.

Ilo said at this current landing cost, the federal government would be subsidising over N100/litre, adding that the cost of diesel was what reflected the real market situation.

He stated, “This is the second time I am bringing in my vessel. But after bringing it in, I am trapped. I can’t sell it because I landed my own product at N720. And if you add transportation from depot to station, the value today should be N729/litre at the pump.

 ”Yes, PETROCAM has an import license, and we have products in Nigeria. I want to say this out loud I brought (in product) 52,000 metric tonnes of PMS today, which I borrowed about sixty-something million dollars to import.

“But I cannot sell. Why? Because of the price NNPC is selling. NNPC, to my mind, they are still subsidising. NNPC is quietly subsidising the market. And I don’t blame the government. It is when we have a stable government that there can be prosperity.

“As of today, NNPC is subsidising these products. And I’m talking about a subsidy of more than N100/litre. Because if you need to sell today, I landed my own product at N720. So how do you look at it? You look at it from the perspective of how much is diesel”